COVID-19 Relief Measures - Update

Covid-19 continues to throw curveballs!  There are a number of financial measures that may be available.

Covid-19 Business Support Scheme

This payment opened 28 February 2022 with payments for a fortnightly period for 6 weeks, so closes 9 May 2022 - but it may be extended.

The payment is $4,000 per business and $400 per full time employee and has a maximum of $24,000 per fortnight.

The criteria is a 40% drop in revenue in 7 consecutive days within the 6 weeks prior to the shift to phase 2 on 15 February, compared to 7 days after that date.

Covid-19 Leave Support and Short Term Absence payments

These two payments that are currently available are for any Covid-19 traffic light colour.  Both are applied for by the business for the purposes of helping businesses pay workers who can’t work while they are self-isolating or because they need to self-isolate while waiting on a test result.  Applications must be made within 8 weeks of the end of an isolation period.

The Leave Support is a weekly payment at a flat rate - $600/worker who is working more than 20 hours or $359/worker if less than 20 hours a week.  This can be applied for weekly provided the criteria is met.  The criteria is that they have Covid-19 or are considered a close contact (assuming under the new determinations this is now a house-hold contact rather than what we know as a close contact); and need to self isolate for at least 4 consecutive days, and can’t work from home.  Self isolation for 11 days or more will allow re-application of the payment.  There is no revenue test, provided an employee or self-employed person is unable to work.

The Short-Term Absence payment is a one-off payment of $359/worker and can only be paid once in a 30 day period.  This is available for when workers are isolating while waiting on test results and can’t work from home (either them or a dependent).  A recent update disallows the payment for those taking a RAT test due to the results being quick and therefore no time required off work.

Small Business Loan

This has been modified to include a “top up” loan of $10,000 with a new repayment period of 5 years and interest free for the first 2 years.

If the Small Business Loan has already been applied for, a top up can be obtained.  Alternatively if the Small Business Loan has been repaid, it may be able to be redrawn with the same conditions provided the criteria continues to be met; otherwise if it has never been applied for the modified amount will be $20,000 plus $1,800 per FTE employee.

Where interest applies, this is at 3% on the remaining balance from the 1st day of the 3rd year.

The criteria for this is being in business for 6 months, a 30% decline in actual revenue and the business must be viable.